Parcl Sees Major Fund Outflow Following Airdrop as Solana Faces Network Issues

Parcl Sees Major Fund Outflow Following Airdrop as Solana Faces Network Issues

Following a significant airdrop event, the Solana-based real estate betting platform Parcl has experienced a substantial decrease in total value locked, with about $74 million withdrawn since April 3. Meanwhile, the Solana network grapples with congestion issues, affecting overall performance amid a general downturn in the cryptocurrency market.

The Solana-based real estate betting platform, Parcl, has experienced a significant outflow of funds following its recent airdrop, with about $74 million leaving the protocol since April 3, according to DefiLlama. This represents a decline of approximately 40% in its total value locked, dropping from $184.5 million to $110.69 million within two weeks.

Parcl Sees Major Fund Outflow Following Airdrop as Solana Faces Network Issues

On Monday, Parcl distributed its native PRCL tokens to eligible users based on a snapshot of their point balances taken earlier in the month. However, the value of PRCL tokens dropped sharply following their initial airdrop, falling from an opening price of $0.8255 to $0.45, and currently trading at $0.5294, as reported by CoinMarketCap.

Launched in February 2023, Parcl is a decentralized platform that enables users to place bets on the housing markets of major cities.

This significant withdrawal from Parcl is part of a broader trend of underperformance among airdropped tokens on the Solana network. For example, Wormhole’s W token has dropped by 56.4% since its release on April 3, and the NFT platform Tensor’s TNSR token has halved in value since its airdrop.

Despite these setbacks, Solana-based projects continue to launch new airdrops. The decentralized exchange Drift announced it would airdrop 100 million of its governance token, DRIFT, on Tuesday, and Zeta Markets made a similar announcement last week.

Recent weeks have seen Solana struggle with network congestion, likely due to spam transactions from bots attempting to prioritize their activities over those of regular users. Solana developers have rolled out updates to address these issues.

In the broader cryptocurrency market, the price of Solana has fallen by 18.8% over the last seven days. The overall market has also seen a decline, with the GMCI 30 index — which tracks the top 30 cryptocurrencies — dropping by 13.79% in the same period, influenced by investors’ cautious stance towards risk assets after Iran’s recent attack on Israel.

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